Updated: August 13, 2018
Status: Ongoing Case
On June 1, 2018, Labaton Sucharow was appointed lead counsel in a securities class action against Shanda Games Limited (“Shanda”) and certain former Shanda senior executives and board members, on behalf of investors in Shanda’s American Depository Shares (“ADS”).
Shanda develops and operates video games that are either played on computers or mobile devices, such as mobile phones.
The case alleges a scheme by the defendants to depress the value of Shanda’s stock and ADS in order to avoid paying a fair price to Shanda’s shareholders during a transaction to take the company private. The action further alleges that the defendants executed this scheme by publishing faulty and misleading financial projections, making affirmative misrepresentations about those projections, omitting key information from their disclosures, and making false assurances about the fair value of Shanda’s stock and ADS. Critically, defendants hid information from investors about their expectations for, and the results of, the blockbuster launch of Mir II Mobile, a mobile version of Shanda’s core video game franchise.
Labaton Sucharow filed an amended complaint on August 13, 2018.
The case is In re Shanda Games Limited Securities Litigation, No. 18-cv-02463 (S.D.N.Y.). Labaton Sucharow represents lead plaintiff David Monk.